Well, you can't see the electrical parade from inside Tony's. You can stand outside on the porch, but I think it would still be crowded in that area.
I do recommend the parade, but don't necessarily recommend Tony's for dining at all...it's so so.
I have not done the buffet at H&V, I have heard mixed reviews. I have seen people waiting for extended times there even with reservations. If you can get Mama Melrose instead, I would try that. I do recommend seeing Fantasmic at some point. You don't need to have the dining reservation to see it. The dining reservation will give you a coupon for seating but the seating area is in the back way off to the side. Without the coupon, you would just have to wait longer in line for a seat.
If you go on a night when there are 2 Fantasmic shows, go to the second one and you will get in and get a good seat and have minimal wait.